Fonterra delivered strong performance - Wilson

He noted the co-op achieved an EBIT of $974m and a 183% increase in net profit at $506 million.

These results importantly include the Latin American business, Dairy Partners Americas for the first time, Wilson noted.

"While the strong second half result was pleasing, the first half was disappointing with big movements in dairy prices impacting inventory valuations and product mix returns," he told about 300 shareholders at the annual meeting this week in Waitoa.

"It was frustrating to finish third out of the cooperatives, and this is unacceptable.

"The reality is the week-to-week swings in price and foreign exchange, and the way we each sell products has a big impact on year to year comparisons.

"We paid a 25c dividend, which this season reflected the higher funding costs from our investments in capacity along with our higher relative advance rate."